Investment Officer Luxembourg

At this week’s Alfi European Asset Management Conference in Luxembourg, Emmanuel Gutton, Alfi’s director of legal and tax, spoke to Investment Officer’s Raymond Frenken for this edition of IO Talks Luxembourg. The topic: European Long Term Investment Funds, a new type of investment fund known as Eltifs that opens the door to private equity and alternatives to a wider group of investors, in particular wealth management clients and the “retail plus” segment. Luxembourg is keen to become a European ánd global hub for these funds.

The 60/40 portfolio has been besieged on all sides since bonds failed to protect against the correction in equities last year. Many see salvation in alternative assets, while others preach flexible allocation. 

Crestbridge, a fund services provider for private equity and real estate funds, has been granted its depositary licence by Luxembourg’s financial services regulator, the Commission de Surveillance du Secteur Financier, CSSF.

The firm has already been licenced by the UK’s FCA to provide depositary service in the UK since 2001. Its Luxembourg licence enables it to further expand its capabilities in supporting a growing number of fund managers in Europe.

Switzerland’s financial markets supervisor is defending its decision to force a 16 billion Swiss franc (16 billion euro) write-off in Credit Suisse debt securities that were designed to function as a shock absorber in case of a major financial event.

Following Sunday’s announcement about the “shotgun wedding” between Credit Suisse and UBS, financial markets raised questions and possible legal challenges about the status of this particular type of debt, known as AT1 and as CoCos, or contingent convertibles. 

Luxembourg-headquartered Quintet Private Bank on Thursday posted its first net profit in four years as interest margins improved thanks to rising interest rates. Higher trading income and a one-time gain from the sale of its stake in EFA also underpinned its performance last year.